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M REPORT | 53 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA wage growth (+5.2%). Additionally, comparing today's rental trends to the 2019 market highlights how renters now face higher costs in a greater variety of areas, as renting in the suburbs no longer offers as much of an affordability advan- tage over big cities as it once did. While the rise in remote work and migration away from down- town areas gave suburban rents room to catch-up to urban rents earlier in the pandemic, the return to downtown life and offices is now driving an especially strong resurgence in big city rents. • In July, the U.S. median rental price hit its latest new high ($1,879), but only increased by $3 over June as rent growth year over year (+12.3%) continued moderating to its slowest pace since August 2021 (+11.5%). • Overall rents posted low double-digit gains over July 2021 levels across all unit sizes in July: Studios, up 14.3% to $1,555; one-bedrooms, up 12.2% to $1,745; and two-bedrooms, up 11.7% to $2,103. • Among the 50 largest metros in July, rental prices grew most quickly year over year in the south and northeast, led by Miami for the 10th straight month (+26.2%). Rounding out July's five fastest-growing rental markets were New York (+25.4%), Boston (+24.8%), Chicago (+20.6%) and Orlando, Florida (+20.4%). • In four out of these five mar- kets, urban rents grew at a fast- er yearly pace than suburban rents, most significantly in New York (+25.4 percentage points) and followed by Chicago (+15.7), Boston (+11.6), and Miami (+6.2); the growth rates were roughly even in Orlando (+19.5% vs. +20.3%). • Nationally, July rent growth year over year was slightly faster in urban areas, up 12.8% to a median $1,927.5, than in suburban areas, up 11.7% to a median $1,821. This is a marked reversal from earlier in the pan- demic in January 2021, when urban rent was falling by 2.5% while suburban rent was grow- ing by 3.9%. Despite the recent resurgence in big city rents, shifts during COVID-19 signifi- cantly shrank the gap between urban and suburban rents from July 2019-2022—by 52.9% or $68 per month. Avail survey finds renters still face rent hikes, but land- lords may be relenting Findings from the latest Avail Quarterly Landlord and Renter Survey underscore that rental affordability challenges are everywhere. Whether renew- ing an existing lease or moving to a new unit, the majority of surveyed renters experienced a rent hike over the past year, with new rentals proving costlier. At the same time, plans reported by landlords suggest that an end to the relentless rent surge may be in sight. Although the majority do expect to increase rents on at least one property, quarter-over- quarter trends indicate landlords are recognizing that renters are reaching their financial limits and beginning to adjust their business approaches accordingly. • Among renters surveyed in July who have been in their current unit for 1-2 years, 52.4% have experienced a rent increase, by a median $160 per month (+13%). Of these renters, 77.1% are considering a move to a more affordable rental. • However, whether in the rental or for-sale market, those looking for lower housing costs may not find much luck. Renters who moved within the past year reported 27% higher rents (+$300) than in their prior residence. Of renters planning to purchase a home, 72.7% are considering putting plans on pause in light of higher costs. • More than half (60%) of renters reported that higher rents and household expenses are their biggest cause of financial strain, down from the April rate (66.1%). Additionally, a typi- cal renter reported being able to put twice as much of their monthly take-home toward sav- ings in July ($100) compared to April ($50). • Findings from July's survey of landlords offer further poten- tial signs that the worst of rental cost pressures may be behind renters. Although 72.1% of landlords reported plans to raise rents within the next year, the rate held steady over the previous quarter after jumping substantially from January (65.1%) to April (72.1%). • When asked why they plan on raising rents, landlords cited higher costs for property man- agement expenses, including tax payments (79.1%), maintenance and upkeep (75%), and utilities (45.9%). In the face of these cost pressures, the share of landlords who plan to buy new proper- ties declined significantly in July (23.4%) from January (37.5%). "Like renters, landlords are feeling financial pains from the inflationary economy. To help offset these higher costs while maintaining local ownership of rentals, our survey suggests that many landlords are making the difficult decision to raise rents. We're also beginning to see that landlords are less interested in growing their portfolios as they were in the past surveys," said Ryan Coon, Avail Co-Founder and VP of Rentals at Realtor. com. "It's important to remem- ber that affordability remains a challenge for many renters. Those who are looking for support can access resources like free financial counseling through Avail's inte- gration with the NFCC Renter Advantage program."